Yellen Calls for Urgent Action on Crypto Oversight to Safeguard Financial System
Treasury Secretary Janet Yellen is gearing up to address the House Financial Services Committee, stressing the cryptocurrency industry’s potential threats to financial stability and advocating for regulatory measures.
Yellen will highlight concerns about stablecoin instability, the risk of runs on crypto platforms, and the volatility of crypto-asset prices during her testimony. Leading the Financial Stability Oversight Council (FSOC), she will push for legislative action to regulate digital assets effectively, underscoring the need for rules enforcement and the passage of laws governing stablecoins and the non-securities crypto spot market.
Yellen’s statement reflects the FSOC’s call for urgent regulatory measures amid the crypto sector’s recovery from significant setbacks like the FTX exchange collapse. The FSOC’s 2023 report had already flagged crypto industry price volatility and interconnectedness as key worries, signaling a unified effort to mitigate systemic risks associated with digital assets. Lawmakers are actively crafting legislation to address stablecoins, market structure issues, and anti-money laundering concerns.
Clever Robot News Desk 7th February 2024
